Productivity spillovers across countries and industries: new evidence from OECD countries

This paper uses a translog approach to estimate intra- and inter-industry productivity spillovers transmitted through input-output linkages, distinguishing R&D and other (remainder) spillovers. For a panel of 12 OECD countries and 15 manufacturing industries from 1995-2005, first, we find that the estimated elasticity with respect to "own" R&D amounts to 0.25 on average (which would be estimated to be lower if R&D were assumed to be additively separable from other inputs). Second, there are sizeable intra-industry and relatively small inter-industry R&D spillovers. Third, there are significant remainder spillovers, which are mainly of the intra-industry type and substantially amplify idiosyncratic technology shocks

Does the regulation of manure land application work against agglomeration economies? Theory and evidence from the French hog sector

The well-known increase in the geographical concentration of hog production suggests the presence of agglomeration economies related to spatial spillovers and inter-dependencies among industries. In this paper, we examine whether the restrictions on land application of manure may weaken productivity gains arising from the agglomeration process. We develop a model of production showing the ambiguous spatial effect of land availability and the restriction on the manure application rate. Indeed, while the regulation of manure application triggers dispersion when manure is applied to land as a crop nutrient, it also prompts farmer to adopt manure treatment that favors agglomeration of hog production. Estimations of a reduced form of the spatial model with a spatial HAC procedure applied to data for French hog production for 1988 and 2000 confirm the ambiguous effect of land limitations induced by the restrictions on manure application. It does not prevent spatial concentration of hog production, and even boosts the role played by spatial spillovers in the agglomeration process.hog production, land availability, manure application regulation, agglomeration economies, spatial econometrics

A Dynamic Spatiotemporal Stochastic Volatility Model with an Application to Environmental Risks

This article introduces a dynamic spatiotemporal stochastic volatility (SV) model with explicit terms for the spatial, temporal, and spatiotemporal spillover effects. Moreover, the model includes time-invariant site-specific constant log-volatility terms. Thus, this formulation allows to distinguish between spatial and temporal interactions, while each location may have a different volatility level. We study the statistical properties of an outcome variable under this process and show that it introduces spatial dependence in the outcome variable. Further, we present a Bayesian estimation procedure based on the Markov Chain Monte Carlo (MCMC) approach using a suitable data transformation. After providing simulation evidence on the proposed Bayesian estimator's performance, we apply the model in a highly relevant field, namely environmental risk modeling. Even though there are only a few empirical studies on environmental risks, previous literature undoubtedly demonstrated the importance of climate variation studies. For example, for local air quality in Northern Italy in 2021, we show pronounced spatial and temporal spillovers and larger uncertainties/risks during the winter season compared to the summer season

Regional Assessment of Openness and Productivity Spillovers in China from 1979 to 2006: A Space-Time Model

This study investigates the impact of inward foreign direct investment (FDI) flows and international trade on labour productivity in 30 Chinese provinces over the period 1979-2006. Since China launched the “open door” policy in 1978, the country has been attracting a growing share of FDI flows and its international trade has been expanding considerably. China’s accession into the WTO in 2001 has also started a new era in its integration into the world economy. In this paper, we model labour productivity as dependent on FDI, foreign trade and other traditional variables such as capital intensity, infrastructure and human capital development. Our empirical analysis improves the existing wide literature by taking into account spatial effects and potential econometric issues they imply. Using recently developed spatial data analysis tools, we explore the pattern, (weather it be negative or positive) and the extent of spatial interaction of labour productivity between regions. Thereby, we extend previous research by testing the explanatory power of additional variables such as spatially lagged independent and dependent variables. The explicit consideration of spatial dependence in the modelling scheme provides us a better understanding of the regional spillovers process. Our results indicate a general trend of spatial autocorrelation in labour productivity during the study period. Put differently, in China, the productivity of a given region is highly determined by those of surrounding regions. In addition, our empirical outcomes yield support for positive and significant impacts of FDI and foreign trade on labour productivity. Furthermore, in China, FDI and trade exhibit a positive spatial pattern and give rise to interregional productivity spillovers among provinces. These findings are robust to a number of alternative spatial weighting matrix specifications.

Population aging, unemployment and house prices in South Africa

Abstract: This paper examines the joint dynamics between house prices, population aging and unemployment in South Africa. It uses provincial level dataset to compare the demographic effects of house prices across different housing segments over the period from 1995 to 2015. When heterogeneity, endogeneity and spatial effects are controlled for, the analysis finds that on average in the past 22 years, population aging have contributed to the decline of the South African house prices by 6.28 and 7.52 basis point in the large and medium housing segments, respectively while the small segment has remained unaffected. Likewise, unemployment appears to have played a significant role in slowing down the growth rate of house prices across segments but to a lesser extent. While the response of real house prices to demographic shift is consistent with the life cycle hypothesis, the insensitivity of small house prices to aging might reveal the mitigating effect of the retirees’ relocation from larger segment houses to smaller ones. The relocation effect might induce higher demand of small segment houses which drives up their prices and offsets the detrimental effect of aging. These findings suggest that, increasing the incentive to prolong the retirement age or engage elderly population in other income generating activities to meet their increasing financial needs given the meagre social security system, is likely to sustain the growth prospective of housing value in South Africa

The changing spatial distribution of economic activity across U.S. counties.

This paper studies the recent trends in the spatial distribution of economic activity in the United States. Using county-level employment data for 13 sector -which cover the entire economy- we apply semi-parametric techniques to estimate how agglometarion and congestion effects have changed between 1972 and 1992. Non-service sectors are found to be spreading out and moving away from centers of high economic activity to areas 20 to 60 kilometers away; service sectors, on the contrary, are increasingly concentrating in areas of high economic activity by attracting jobs from the surrounding 20 kilometers.Economic geography; Spatial externalities; U.S. counties;

Social Interactions in the Labor Market

We examine theoretically and empirically social interactions in labor markets and how policy prescriptions can change dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor supply perfectly inelastic at a reference group average. The demand for a good may also be influenced by either a spillover effect or a conformity effect. Positive spillover increases the demand for the good with interactions, and a conformity effect makes the demand curve pivot to become less price sensitive. Similar social interactions effects appear in the associated derived demands for labor. Individual and community factors may influence the average length of poverty spells. We measure local economic conditions by the county unemployment rate and neighborhood spillover effects by the racial makeup and poverty rate of the county. We find that moving an individual from one standard deviation above the mean poverty rate to one standard deviation below the mean poverty rate (from the inner city to the suburbs) lowers the average poverty spell by 20–25 percent. We further consider overall labor market outcomes by examining theoretically the socially optimal wealth distribution. Interdependence in utility can mitigate the need to transfer wealth to low-wage individuals and may require them to be poorer by all objective measures. Finally, we quantify how labor market policy changes when there are household social interactions. Labor supply estimates indicate positive economically important spillovers for adult U.S. men. Ignoring or incorrectly considering social interactions can mis-estimate the labor supply response of tax reform in the United States by as much as 60 percent.social interactions, spillover, conformity, inequality, poverty, labor supply, reference group, social multiplier, income tax, PSID

The Case of New York City

학위논문(석사) -- 서울대학교대학원 : 농업생명과학대학 농경제사회학부(지역정보학전공), 2022. 8. Hong Sok(Brian) Kim.Differential access to healthy food has long been a critical public health issue as it perpetuates health disparities among people of different socioeconomic characteristics. Inequities in food access have been further exacerbated by COVID-19, which not only disrupted food production at global levels but also restricted access to food retail venues at neighborhood levels. Vulnerabilities in the food system that have been exposed by COVID-19 highlights a need for equitable and resilient food systems that can withstand shocks. To inform equitable and resilient food systems planning policies, this study examined the association between food accessibility and neighborhood characteristics in New York City, and analyzed the changes in their association before and during the pandemic, in years 2019 and 2020. Based on 5,712 census block groups, the study first measured food accessibility of each block group by the count of accessible supermarkets and large grocery stores within its 1km-network service area. Then, the food accessibility measure was modeled with socioeconomic and built environment factors using spatial econometric models and geographically weighted regression to appropriately adjust for spatial effects that are present in the food accessibility data. The results revealed that regression models that do not account for spatial effects in food accessibility could over- or underestimate its association with racial/ethnic and income variables. In detail, the results showed mostly negative association between food accessibility and the percentage of Black or African Americans and racial/ethnic diversity, whereas a positive association was found with the percentage of Hispanic or Latinx origin population. Its association with income became negative in 2020, which diverges from past findings on food accessibility and income levels. Spatially varying relationship corroborated findings on local spillover effects that may have been in play. Conclusively, results of this study not only emphasize the need to consider spatial effects in studies of food accessibility but also imply that improving network connectivity and promotion of smaller scale food stores may contribute to developing equitable and resilient food systems policy.불평등한 식품접근성은 사회경제적 특성이 다른 개인 간의 건강격차를 고착시킬수 있어 공중보건 분야에서 중요한 문제가 되고 있다. 코로나19는 식품 공급을 방해하고, 인접한 식료품점으로의 접근을 제한하여 지역 단위의 식품환경 수준을 저해아였다. 코로나19로 드러난 식품체계의 취약성은 식품체계의 평등성 및 회복탄력성 보완을 위한 정책 수립의 당위성을 보여준다. 본 연구는 미국 뉴욕시 사례를 중심으로, 코로나19 팬데믹 전후의 식품접근성과 지역특성 간의 연관성을 비교하여 식품체계의 평등성 및 탄력성 강화 방안에 기여하고자 한다. 이를 위해 5,712개의 미국 센서스 블록그룹을(census block group) 대상으로 도로 네트워크 기반 1km 반경 내 위치한 대형 식료품점의 수를 활용하여 각 블록그룹의 식품접근성을 측정하였다. 본 연구에서는 지역단위의 분석자료에 존재하는 공간효과를 고려하기 위해 공간계량모형 및 지리가중회기분석모형을 활용하여 식품접근성과 사회경제적 특성 및 건조환경 간의 관계를 분석하였다. 분석결과 식품접근성의 공간효과를 고려하지 않을 경우 인종 집단 및 소득 변수와의 연관성이 과대 또는 과소 추정될 수 있음을 확인하였다. 변수별 식품접근성과의 관계에 있어 흑인 또는 아프리카계 미국인 비율과 인종 다양성은 음의 관계를, 히스패닉계 또는 라틴아메리카 출신 인구 비율은 양의 관계를 보이는 것으로 나타났다. 중위소득 변수의 경우 2020년 팬데믹 동안 음의 관계를 보이는 것으로 나타나, 식품접근성과 소득 수준 간의 관계에 대한 기존 연구결과와 차이점을 보였다. 또 공간계량모형을 통해 확인된 국지적 파급효과는, 지역특성 간의 관계과 블록그룹별로 상이한 것으로 나타난 지리가중회기모형 결과를 통해서도 뒷받침된다. 본 연구의 결과는 식품접근성에 대한 연구에서 공간효과를 고려할 필요성을 강조할 뿐만 아니라, 네트워크 연결성 개선과 소규모 식료품점 활성화가 평등하고 회복탄력적인 식품체계 개선에 기여할 수 있음을 시사한다.1. Introduction 1 2. Literature Review 3 2.1 Food Accessibility and Health 3 2.2 Food Accessibility and Neighborhood Characteristics 4 2.3 Spatial Modeling for Neighborhood Effects 5 2.4 Food Accessibility Resilience 6 3. Data and Methodology 8 3.1 Study Area 8 3.2 Data 10 3.3 Spatial Modeling Methodology 12 3.4 Modeling Procedure 17 4. Results 18 4.1 Variable Selection and Descriptive Statistics 18 4.2 Model Specification Tests 20 4.3 Spatial Econometric Model: SDEM 22 4.4 Geographically Weighted Regression 30 5. Conclusion 36 References 40 Appendices 46석

Interpreting dynamic space-time panel data models

22 pagesInternational audienceThere is a great deal of literature regarding the asymptotic properties of various approaches to estimating simultaneous space-time panel models, but little attention has been paid to how the model estimates should be interpreted. The motivation for use of space-time panel models is that they can provide us with information not available from cross-sectional spatial regressions. LeSage and Pace (2009) show that cross-sectional simultaneous spatial autoregressive models can be viewed as a limiting outcome of a dynamic space-time autoregressive process. A valuable aspect of dynamic space-time panel data models is that the own- and cross-partial derivatives that relate changes in the explanatory variables to those that arise in the dependent variable are explicit. This allows us to employ parameter estimates from these models to quantify dynamic responses over time and space as well as space-time diffusion impacts. We illustrate our approach using the demand for cigarettes over a 30 year period from 1963-1992, where the motivation for spatial dependence is a bootlegging effect where buyers of cigarettes near state borders purchase in neighboring states if there is a price advantage to doing so.La littérature économétrique récente fait une place croissante à l'étude des propriétés asymptotiques des différentes méthodes d'estimation des modèles de données de panel spatio-temporels. Toutefois, force est de constater que peu d'attention est consacrée à l'interprétation économique de tels modèles malgré leur grand intérêt pour la modélisation des phénomènes économiques dans une dimension spatio-temporelle et le rôle qu'ils pourraient jouer dans l'évaluation des politiques économiques dans cette même dimension. Nous montrons dans ce papier que les coefficients estimés de ces modèles permettent d'expliciter non seulement la dynamique temporelle des impacts mais également leur dynamique spatiale et surtout de quantifier la diffusion spatio-temporelle de l'impact d'une variation d'une variable explicative. La méthode proposée est illustrée par une étude de la demande de cigarettes dans 46 Etats américains sur la période 1963-1992 en utilisant une base de données bien connue dans la littérature économétrique. La présence d'autocorrélation spatiale est ici motivée par un effet de " contrebande ". Les consommateurs proches des frontières d'un état achèteront en effet leurs cigarettes dans les états voisins si le prix des cigarettes y est inférieur à celui pratiqué dans leur propre Etat